Church Renovation Loans & Financing

Church renovation financing can be a great way to get the funding you need to furnish and equip your church. However, it’s important to understand what is not covered by this type of financing.  Notably, church renovation loans cannot be used to purchase land or buildings, for new ground up construction, or for financing church buses or vans.  It also can’t be used for operating expenses, to cover salaries, or for mission work. 

Renovation financing for a church is most often used in two scenarios.  The first is when you are moving into a new location.  The building has good bones, but needs interior work to make it the right home for your congregation.  The second scenario is when you are improving your current house of worship.  Often updating your current building is much more cost-effective than finding a new home, and a renovation loan allows you to spread out these (often sizeable) costs out time. 

The other key consideration is how the current financials of your church compare to the cost for your desired upgrades.  If the cost of the church improvements you need is relatively low, then financing may not be the best option. However, if the cost of improvements is relatively high, then financing may be a good option. It allows you to create the right outcome while spreading the investment out over a longer period of time.   

Similarly, you should evaluate the size of your current capital fund relative to the cost of improvements.  If you have extensive reserves which aren’t earmarked for another use, then our church loan specialists will typically recommend utilizing those rather than taking on a new loan.  On the other hand, if your capital funds are already reserved for another use, then church renovation financing can fill in the gap. It allows you to upgrade your church today, better serving your constituents and helping to attract new constituents with newly renovated location. 

If repair and maintenance are a concern, church equipment leasing might be the best option. In a leasing scenario, the faith community doesn’t own the equipment outright.  As a result, the company leasing it to you is responsible for repairs and maintenance. 

In particular, church pews are particularly expensive and are often among the first items to be upgraded. In that case, a church furniture loan can help you purchase high quality furniture without taking away from other church expenses.

   it comes to financing for a church, there are many options available.

Church construction loans can be leverage if the congregation is going to construct or build a new facility, while church mortgages are used to finance the purchase of an existing facility.

There are also possibilities for church equipment financing which can be used to purchase audio-visual systems, office technology, commercial kitchen appliances, or even playgrounds for children. For those churches needing transportation, taking out a church vehicle loan funds the purchase of buses and vans. As an additional financial resource, churches may choose to apply for a church line of credit which can provide a reserve fund just in case of emergency or assist in funding online ministries.

 At Faith Based Funding our team of church lenders  strives to understand the unique needs of each congregation and provide advice on the best solution for their individual situation. We take into account all available options and guide you through selecting the most cost-efficient choice that will help your church grow and succeed. Our knowledgeable advisors have vast experience in this field and will take time to answer any questions you may have so that you can make an informed decision about your finances.